Earlier on Wednesday, America’s second-largest discount retailer company, Target (NYSE: TGT) has cut its fiscal-year profit forecast after the company reported sluggish quarterly sales well below analysts’ expectations due to weak demands for electronic devices along with an attempt to restore its grocery business.
For their second quarter, Target reported earnings of $1.23 a share on $16.17 billion in revenue and consenus estimated of $1.12 a share on $16.18 billion in revenue.
“While we recognize there are opportunities in the business, and are addressing the challenges we are facing in a difficult retail environment, we are pleased that our team delivered second quarter profitability above our expectations,” said Brian Cornell, Chairman and CEO of Target
“I think it’s going to highlight concerns about share loss versus the likes of Amazon, and we’ll see with what Wal-Mart has to say,” said JP Morgan analyst Chris Horvers . If sales don’t pick up, Wall Street may need to bring down its forecasts for next year,” he added.
Shares down over 6% after the announcement early morning.